What if I paid part or all of my tuition using a scholarship?
If you pay higher education expenses with scholarship funds, you can't claim the American Opportunity Credit orLifetime Learning Credit for those specific amounts.
If only part of your tuition was covered by a scholarship, you can claim a credit for the tuition you actually paid.
Exception: In rare situations, a scholarship is included in taxable income, such as if you are doing work for a professor in return for a scholarship. If this applies to you, and you're reporting your scholarship money as income on your tax return, then you can claim education expense amounts paid by the scholarship for the education credits.
If only part of your tuition was covered by a scholarship, you can claim a credit for the tuition you actually paid.
Exception: In rare situations, a scholarship is included in taxable income, such as if you are doing work for a professor in return for a scholarship. If this applies to you, and you're reporting your scholarship money as income on your tax return, then you can claim education expense amounts paid by the scholarship for the education credits.
